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Chapter 8 E-commerce n n n Please discontinue use of cell phone and turn Chapter 8 E-commerce n n n Please discontinue use of cell phone and turn off ringer Succeeding with Technology Roots of E-commerce Overview of Electronic Commerce E-commerce Applications Mobile Commerce E-commerce Implementation

E-commerce n E-Commerce refers to systems that support electronically executed business transactions n Although E-commerce n E-Commerce refers to systems that support electronically executed business transactions n Although e-commerce covers all forms of electronic transactions, it is typically used in reference to Internetbased transactions. Succeeding with Technology

E-commerce www. arcticways. com How do you think Arctic. Ways. com has impacted the E-commerce www. arcticways. com How do you think Arctic. Ways. com has impacted the life of villagers in bush Alaska and benefited the world? Succeeding with Technology Food for thought and discussion…

Other Examples n http: //www. mindjet. com/us/ n http: //freemind. sourceforge. net/wiki/index. ph p/Main_Page Other Examples n http: //www. mindjet. com/us/ n http: //freemind. sourceforge. net/wiki/index. ph p/Main_Page n http: //www. visual-mind. com/ n http: //www. inxight. com/products/sdks/st/ n http: //www. inxight. com/products/sdks/tl/ n http: //www. inxight. com/products/sdks/tw/ Succeeding with Technology

7. 1 The Roots of E-commerce Key Terms • E-commerce • Electronic Data Interchange 7. 1 The Roots of E-commerce Key Terms • E-commerce • Electronic Data Interchange (EDI) • Transaction Processing System (TPS) Succeeding with Technology

E-commerce History Succeeding with Technology E-commerce History Succeeding with Technology

Electronic Data Interchange (EDI) n EDI uses private communications networks called value-added networks (vans) Electronic Data Interchange (EDI) n EDI uses private communications networks called value-added networks (vans) to transmit standardized transaction between Many EDI partners and suppliers. applications are moving from VANs to the Internet Succeeding with Technology

Transaction Processing n A transaction is an exchange or transfer of goods, services, or Transaction Processing n A transaction is an exchange or transfer of goods, services, or funds n A Transaction Processing System (TPS) is an information system that supports and records transactions. Succeeding with Technology

Transaction Processing n Data collected in Transaction Processing Systems feeds into more sophisticated Management Transaction Processing n Data collected in Transaction Processing Systems feeds into more sophisticated Management Information Systems (MIS’s) to provide useful information. Succeeding with Technology

Transaction Processing Cycle 1. 2. 3. 4. 5. 6. Data Collection Data Editing Data Transaction Processing Cycle 1. 2. 3. 4. 5. 6. Data Collection Data Editing Data Correction Data Manipulation Data Storage Data Output Succeeding with Technology

Transaction Processing Systems n There a variety of TPS’s that serve various functions within Transaction Processing Systems n There a variety of TPS’s that serve various functions within an organization. Succeeding with Technology

7. 2 Overview of E-commerce Key Terms • Business-to-consumer E-commerce (B 2 C) • 7. 2 Overview of E-commerce Key Terms • Business-to-consumer E-commerce (B 2 C) • Business-to-business E-commerce (B 2 B) • Consumer-to-consumer E-commerce (C 2 C) • Supply Chain Management Succeeding with Technology

Types of E-commerce n Business-to-consumer (B 2 C) n Business-to-business (B 2 B) n Types of E-commerce n Business-to-consumer (B 2 C) n Business-to-business (B 2 B) n Consumer-to-consumer (C 2 C) Which is used most? Succeeding with Technology

B 2 B Rules! Succeeding with Technology B 2 B Rules! Succeeding with Technology

Buyer’s Perspective Succeeding with Technology Consider how these activities are supported in e -commerce. Buyer’s Perspective Succeeding with Technology Consider how these activities are supported in e -commerce.

Seller’s Perspective n Market Research n Product/Service Production n Marketing and advertising n Payment Seller’s Perspective n Market Research n Product/Service Production n Marketing and advertising n Payment support n Delivery n After-sales support Succeeding with Technology Consider how these activities are supported in e -commerce. Supply Chain Management

Benefits and Challenges n Farmyard Nurseries Taking the business online expanded its market from Benefits and Challenges n Farmyard Nurseries Taking the business online expanded its market from primarily local customers to customers all around the world. n Consider how this must have effected operations. www. farmyardnurseries. co. uk Succeeding with Technology

Benefits and Challenges n In order to save its technology-threatened business, Kodak changed its Benefits and Challenges n In order to save its technology-threatened business, Kodak changed its image from a film company to a digital picture company. www. kodak. com Succeeding with Technology

7. 3 E-commerce Applications Key Terms • E-tail • Electronic Exchange Succeeding with Technology 7. 3 E-commerce Applications Key Terms • E-tail • Electronic Exchange Succeeding with Technology

Retail E-Commerce n E-tailing has dramatically influenced the way people shop by providing customers Retail E-Commerce n E-tailing has dramatically influenced the way people shop by providing customers with product information and the ability to comparison shop. Succeeding with Technology www. mysimon. com www. nextag. com www. dealtime. com www. pricescan. com www. pricegrabber. com

Online Clearinghouses, Auctions, and Marketpaces n Online clearinghouses, Web auctions, and marketplaces provide a Online Clearinghouses, Auctions, and Marketpaces n Online clearinghouses, Web auctions, and marketplaces provide a platform for businesses and individuals to sell their products and belongings. Succeeding with Technology www. ubid. com www. ebay. com

B 2 B Global Supply Management n Global supply chain management (GSM) provides methods B 2 B Global Supply Management n Global supply chain management (GSM) provides methods for businesses to find the best deals on the global market for raw materials, and supplies needed to manufacture their products. www. ariba. com Succeeding with Technology

Electronic Exchanges n An electronic exchange is an industry specific Web resource created to Electronic Exchanges n An electronic exchange is an industry specific Web resource created to provide a convenient centralized platform for B 2 B e-commerce among manufacturers, suppliers and customers. Succeeding with Technology www. covisint. com www. worldwideretailexchange. org

Marketing n The Web is used for unsolicited advertising, solicited product information, and market Marketing n The Web is used for unsolicited advertising, solicited product information, and market research. The Web empowers marketers (www. doubleclick. com) … Succeeding with Technology

Marketing n The Web is used for unsolicited advertising, solicited product information, and market Marketing n The Web is used for unsolicited advertising, solicited product information, and market research. …and consumers. Succeeding with Technology

Banking, Finance, and Investment n Many banking, finance and investment transactions now occur online. Banking, Finance, and Investment n Many banking, finance and investment transactions now occur online. Succeeding with Technology

7. 4 Mobile Commerce Key Terms • M-commerce • Proximity payment system Succeeding with 7. 4 Mobile Commerce Key Terms • M-commerce • Proximity payment system Succeeding with Technology

M-commerce n M-commerce is a form of e-commerce that takes place over wireless mobile M-commerce n M-commerce is a form of e-commerce that takes place over wireless mobile devices such as handheld computers and cell phones. www. luckymag. com n Popular m-commerce products and services include ring tones, games, music, videos, messaging services, etc. Succeeding with Technology

M-commerce Technology n Wireless Application Protocol (WAP) used to create mcommerce applications. n Wireless M-commerce Technology n Wireless Application Protocol (WAP) used to create mcommerce applications. n Wireless Markup Languages (WML) used to create Web pages and applications for small displays. n Infrared and Bluetooth for close range, device-to-device communications. Succeeding with Technology

M-commerce Delivery n Through cell phone service provider n Over the mobile Web n M-commerce Delivery n Through cell phone service provider n Over the mobile Web n Through SMS Texting n Through short-range wireless data communictaions U. S. wireless music market to surge to $1. 2 billion by 2009. Succeeding with Technology GPS technology will lead to locationbased m-commerce applications.

Proximity payment systems n Proximity payment systems make use of Infrared, Near Field Communication Proximity payment systems n Proximity payment systems make use of Infrared, Near Field Communication (NFC), or RFID technologies to support contactless payments using a cell phone. www. vivotech. com/products/vivo_wallet Succeeding with Technology

7. 5 E-commerce Implementation Key Terms • E-commerce host • Web services • E-cash 7. 5 E-commerce Implementation Key Terms • E-commerce host • Web services • E-cash • Smart card • Digital Certificate • Encryption Succeeding with Technology

E-commerce Host n An e-commerce host is a company that takes on some or E-commerce Host n An e-commerce host is a company that takes on some or all of the responsibility of setting up and maintaining an e-commerce system for a business or organization. $49. 95 per month Succeeding with Technology

E-commerce Host n Office depot contracted IBM to design and implement its B 2 E-commerce Host n Office depot contracted IBM to design and implement its B 2 B/B 2 C system. Succeeding with Technology

E-commerce Implementation n E-commerce implementation requires investment in: ¡Infrastructure ¡Hardware and Networking ¡Software Succeeding E-commerce Implementation n E-commerce implementation requires investment in: ¡Infrastructure ¡Hardware and Networking ¡Software Succeeding with Technology E-tailers like Amazon custom build their Web sites for each registered visitor.

Web Services n Web services are programs that automate tasks by communicating with each Web Services n Web services are programs that automate tasks by communicating with each other over the Web. www. w 3. org/2002/ws/ http: //en. wikipedia. org/wiki/Web_service http: //msdn. microsoft. com/webservices/ http: //java. sun. com/webservices/ Succeeding with Technology

Building Traffic Succeeding with Technology 3 C’s – Content, Community, & Commerce Building Traffic Succeeding with Technology 3 C’s – Content, Community, & Commerce

Payment Systems n Credit card transactions Succeeding with Technology Payment Systems n Credit card transactions Succeeding with Technology

Payment Systems n E-cash is a Web service that provides a private and secure Payment Systems n E-cash is a Web service that provides a private and secure method of transferring funds from a bank account or credit card to online vendors or individuals for e-commerce transactions. www. paypal. com Succeeding with Technology

International Markets www. landsend. com http: //www 1. landsend. co. jp http: //www 1. International Markets www. landsend. com http: //www 1. landsend. co. jp http: //www 1. landsend. de Through a process called localization, companies hire international Web developers to assist with translating Web site content into different languages for different cultures. Succeeding with Technology

Security Issues Cardswipe Keyboard n Identity Verification n A digital certificate is a type Security Issues Cardswipe Keyboard n Identity Verification n A digital certificate is a type of electronic business card that is attached to Internet transaction data to verify the sender of the data. [www. verisign. com] n Encryption uses high-level math functions and computer algorithms to encode data. Succeeding with Technology

Chapter 8 Questions? Don’t forget to turn your phone on!! Succeeding with Technology Chapter 8 Questions? Don’t forget to turn your phone on!! Succeeding with Technology